Question

The following table presents the long-term liabilities and stockholders’ equity of Information Control Corp. one year ago:

Long-term debt	$	66,400,000
Preferred stock		4,140,000
Common stock ($1 par value)		16,400,000
Capital surplus		46,400,000
Accumulated retained earnings		136,400,000

  
During the past year, the company issued 11.4 million shares of new stock at a total price of $60.8 million, and issued $36.4 million in new long-term debt. The company generated $11.8 million in net income and paid $3.4 million in dividends.

Prepare the current balance sheet reflecting the changes that occurred at the company during the year. (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g., 1,234,567.)

INFORMATION CONTROL CORP. Current Balance Sheet
(Click to select)Accumulated retained earningsCapital surplusCommon stockLong-term debtPreferred stockAccounts payable	$
Total long-term debt	$
Shareholders' equity
(Click to select)Accounts payableCapital surplusPreferred stockLong-term debtCommon stockAccumulated retained earnings	$
(Click to select)Common stockAccumulated retained earningsLong-term debtPreferred stockAccounts payableCapital surplus
(Click to select)Common stockPreferred stockCapital surplusAccounts payableAccumulated retained earningsLong-term debt
(Click to select)Accumulated retained earningsCapital surplusCommon stockLong-term debtPreferred stockAccounts payable
Total equity	$
Total liabilities & equity	$

Answer 1

1:Long term debt = 66400,000+ 36400,000= 102,800,000

2: Preferred stock remains same

3: Common stock = 16,400,000+ 11400,000 (Since issued at par value of $1)

= 27,800,000

4: Capital surplus on new stock= 60800,000-11400000 = 49400000

Capital Surplus = 95,800,000

5: Accumulated retained earnings = Opening balance+ Net Income- Dividends

= 136400000+ 11800000-3400000

=144,800,000

CURRENT BALANCE SHEET

Long-term debt	102,800,000
Total Long term debt		102,800,000
Preferred stock	4,140,000
Common stock ($1 par value)	27,800,000
Capital surplus	95,800,000
Accumulated retained earnings	144,800,000
Total Equity		272,540,000
Total liabilities and equity		375,340,000